Question 1 (1 point) Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company’s cost of capital is 20 percent. What is the internal rate of return on this project? (Round to the nearest percent.) Question 1 options: 20% 24% 22% 28% Save Question 2 (1 point) Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $816,822, $863,275, $937,250, $1,020,110, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Your Answer:Question 2 options: Answer Save Question 3 (1 point) Given the following cash flows for a capital project, calculate the IRR using a financial calculator Year 0 1 2 3 4 5 Cash Flows ($50,467) $12,746 $14,426 $21,548 $8,580 $4,959 Question 3 options: 8.41% 8.05% 8.79% 7.9% Save Question 4 (1 point) An investment of $83 generates after-tax cash flows of $50.00 in Year 1, $74.00 in Year 2, and $129.00 in Year 3. The required rate of return is 20 percent. The net present value is Your Answer:Question 4 options: Answer Save Question 5 (1 point) Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years. Given a required rate of return of 10 percent, what is the NPV of this project? Question 5 options: -$197,446 $1,802,554 $197,446 -$1,802,554 Save Question 6 (1 point) Which ONE of the following statements about the payback method is true? Question 6 options: The payback method is consistent with the goal of shareholder wealth maximization The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return. There is no economic rational that links the payback method to shareholder wealth maximization. None of these statements are true. Save Question 7 (1 point) McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $837,500, and $1,200,000 over the next three years. What is the payback period for this project? Your Answer:Question 7 options: Answer Save Question 8 (1 point) Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project? Year Project 0 ($11,368,000) 1 $ 2,112,590 2 $ 3,787,552 3 $ 3,225,650 4 $ 4,115,899 5 $ 4,556,424 Your Answer:Question 8 options: Answer